Ask a CCCS counsellor a bankruptcy question

StepChange_Pavan

Hi, thanks for reply. He has considered rental and sale of property.....but unfortunately in this climate there isn't much demand and if there were, it would more than likely be just summer months. Any idea of potential consequences if he just handed keys back over and walked away?? they haven't fore filled all contractual obligations( was bought off plan) but probably not serious enough to call breach of contract. He will lose deposit and fees etc, but the bank he owes mortgage to will presumably take over the property and sell at auction??[/QUOTE]

Hi there,

Unfortunately we only advise on UK debts.

I’d recommend that he either seeks legal advice or Cypriot debt advice.

I’m sorry we can’t help any further,

Kind regards,
Pavan

gatostar

Hi Pavan,

thank you for your quick reply.Let me go into details to give you a clear picture about my problem:

I received a downpayment by a customer for a bodyshell itself and to complete the construction, which I couldn´t, due to certain circumstances.
Therefore we had to go to court then to get a decision, who is right or wrong, and the civil court had decided then that it was my fault and issued a court decision against me, that I have to pay back the downpayment to my customer, which I couldn´t do anymore,because the money was gone.
Now I´m planning to file for bancruptcy and want to include this downpayment into my debts form.But I´m not sure, if debts, which are now a executory title
( or enforcement order ?) due to the civil court decision are secured or unsecured debts ?

Regards

Andreas

RAHRAH700

I currently have a CCCS debt management plan in place with £23000 of debt on (debt was run up when my husband lost his eye and spent 6 months in hospital so we lived on credit cards throughout that time) that we have been plodding along and paying for the last couple of years, however over the weekend we had 2 bits of bad news one of which being that my husbands ex girlfriend has somehow managed to acquire a credit card in my husbands name and run up £4k of debt on it which can now be classed as fraud against us as we declared all our debts when we took out the debt management plan which has upset me slightly as now he ex has dissappeared (conveniently) also i was made redundant on Friday and there is no way we could continue with the plan, i know that we can reduce our payment and make a gratituary payment each month but that isnt really going to help reduce our debts.
I am considering bankrupcy at the moment as it seems like the only way out as we cannot survive on just my husbands wages alone. Is there any way we can declare ourselves bankrupt withot losing our house? Its all we have to show at the moment for our hard work and it would be heartbreaking to lose it!

StepChange_Pavan

charley1 wrote: »

Hi I have a few questions and was wondering if you could help,me and my husband have around 17k worth of debt (credit cards overdraft and a loan, we have a mortgage with northern rock as well of £120,000 the problem we have is he is self employed (in the building trade) and he is earning less than half what he was 2 yrs ago and we just don't have enough money to pay it all we are having to borrow money on our credit card just to scrape by every month and just don't want to do this anymore as our debt is getting higher and higher.The other problem we have is the inland revenue have been in touch and it turns out he done his tax return wrong last year (he must have lost one of his monthly income sheets so his income was over £3000 higher last year than we thought so I am guessing tax credits are going to want it back so we will have even less money coming in soon.Our house has a few thousand at most equity we are on the standard variable rate atm but cant fix with anyone as we dont have enough equity and our income isnt high enough anymore for anyone else to lend to us we can't afford the £706 payments each month we don't want the house anymore its too expensive and not big enough for us so my questions are


1..does bankruptcy sound like an option for us (our monthly outgoings are about £350 more than we have coming in and its set to get worse with tax credits )

2..privately renting in our area is about the same as what we pay on the mortgage so not an option we were hoping our council would house us but would they help if we do a voluntary repo or would we have to be reposessed (with 2 small children I would like to have housing sorted before we started br)

hope you can help I have lots of questions but these are the main ones


p.s we have no other assets other than a car worth about £1000

Hi Charley1 and thank you for your post.

It’s difficult to say whether bankruptcy is your best option without knowing more details about your situation.

The most pressing issue is the fact that you are in a deficit budget situation and can’t support your expenditure at the moment. I’d recommend that you call our Helpline so that we can discuss your situation, suggest ways of improving it and explore all of the options that are available to you.

With regards to the repossession of your house, we can refer you on to our specialist mortgage team that will be ale to look at all of your options with you and discuss what is best.

You can book a telephone based appointment by calling our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00. If you do decide to call us, please have details ready regarding your income, expenditure and creditors, as this can help speed up the referral process. If you have all of the necessary information ready, it may be possible to refer you directly to a counsellor for immediate advice. Alternatively, we will arrange for an appointment to be booked at a time convenient for you.

Kind regards,
Pavan

StepChange_Pavan

backward7 wrote: »

I am just about to declare myself bankrupt, I have 45000 ish in debt, mainly due to the ending of my marraige and losing the house.
I am in the middle of a court case for gaining custody of my sons (who currently reside with me) and I can no longer afford a solicitor.
If I am bankrupt will I qualify for Legal Aid?
Not sure If I am in the right section but new to this and asking for some help???

Hi backward7 and thank you for your post.

I’d recommend that you contact Community Legal Advice and they will be able to advise you on whether or not they can help.

Kind regards,
Pavan

StepChange_Pavan

gatostar wrote: »

Hi Pavan,

thank you for your quick reply.Let me go into details to give you a clear picture about my problem:

I received a downpayment by a customer for a bodyshell itself and to complete the construction, which I couldn´t, due to certain circumstances.
Therefore we had to go to court then to get a decision, who is right or wrong, and the civil court had decided then that it was my fault and issued a court decision against me, that I have to pay back the downpayment to my customer, which I couldn´t do anymore,because the money was gone.
Now I´m planning to file for bancruptcy and want to include this downpayment into my debts form.But I´m not sure, if debts, which are now a executory title
( or enforcement order ?) due to the civil court decision are secured or unsecured debts ?

Regards

Andreas

Hi Andreas and thanks for clarifying your question.

From the information you’ve given me it sounds like the debt isn’t secured but this should be confirmed on your court papers.

If you’d like some more detailed advice, I’d recommend that you contact us so that we can refer you to our specialist bankruptcy team. They will be able to look at your situation in more detail and tell you whether you should include this debt in your bankruptcy.

To do this you can either use our online advice facility Debt Remedy or book a telephone based appointment by calling our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00.

Hope this helps.

Kind regards,
Pavan

mrmadcat69

I was made banckrupt in 2000 by the VAT office for an unpaid debt of £1.74 !. I had already de registered for Vat and they later admited there mistake. But it was too late to stop everything in the end I had total debts (not including mortgage) of £11 k the bankrupcy was pased to Grant Thornton who took out a possetion order on my property which meant we lost our home (this was 3 years after the original bankrupcy). Grant Thornton sold our property for £10k less than the market value at the time but it still left after mortgage paid a total of £42,000 they then charged a total of £32,500 Admin and other fee's which meant that out of £42,000 there wasn't enough to pay off all the creditors in full they did however get 98p to the £1. Was it legal for Grant Thornton to do this I contacted them at the time and was told they could charge what they liked and as they were in charge of the money it was upto them who got paid and when they would not give me any paperwork to show where the balance (£42,000) had gone only a brief letter that showed there would be £429.00 left and there would be outstanding charges to them of £450.00 can I do anything about this now ? with all the banks being made to pay back unrealistic charges surly someone can help me with the fight against a large company like Grant Thornton at the time no soliciter would even write a letter to them without a £5,000 bond as they said it would cost that to force a reveiw and there was no guarentee of me getting anything back.

vannsfamily

Hi,

We are new here and have already spoken with citizens advice re bankruptcy and are planning to do so in the next month or so, but we have a few technical questions.

We have about £37k debt plus a buy to let flat that is in negative equity, £30k, which we are having voluntary reposessed. Our house is currently in negative equity by some £10k and there is an extra loan that was taken with northern rock on the together package, which says it is unsecured, but we have heard they secure it against the property, this is for £18k.

We are concerned that if we have to stay in the house we will still have a large amount of debt in the form of negative equity, required maintenance to the roof and also if the interest rate increases it will become unaffordable.
We want to do this once, the br, and be debt free.

Will the OR take the above into account and ask for the house to be sold so we can move to council housing or private rented?

What would you suggest?

Thanks,
Mr V

njmpk14

I went bankrupt in september 2008 and was under the impression that i would be discharged after a year, do you get notified of this or is it just implied?
Nicki

philnicandamy

Most discharged after 12mnths dont usually get written confirmation.....

you need to speak to your receiver who dealt with your bankruptcy & they'll send you something in writing for free to confirm your discharge